Expense Accounts

question 5

Multiple Choice

Expense accounts

• A) Are increased with credit entries
• B) Are increased with debit entries
• C) Normally have credit balances
• D) Are closed to the capital stock account

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount in a specific period.

Selling

The process of persuading potential buyers to purchase a product or service, often involving marketing, negotiation, and sales strategies.

Administrative Expense

Costs related to the general operation of a business that are not directly linked to the production or selling of goods or services.

Planning Budget

A budget created before a period begins, outlining expected revenues, expenses, and other financial transactions, serving as a blueprint for financial performance.